The eight weeks of consolidation, 56 days, happened as compressed (sandwich style) action right in-between MA200 and EMA55/89.
The EMA55/89 duo worked as resistance while MA200 worked as support.
Before a major move the market always tends to produce a form of shakeout. Sometimes it is call a bear-trap, a shakeout, a liquidity-hunt or stop-loss hunt event, a failed signal, etc.
Here Ether (ETHUSDT) closed below MA200 one week just to recover the next. In this case, we will call it a failed breakdown but we know this is a way to liquidate over leveraged long-traders, also a way to catch unsuspecting bears ready to short. The conclusion is simple, Ether recovered the next week above MA200 and the following week above EMA55/89 which worked as resistance for six weeks. With these levels behind us, the market is full green.
Notice the last two candles, big huge green candle. That is because resistance is no more.
With no resistance to stop prices from rising, Ethereum started to grow and we are now in full blown bullish mode.
The last major high sits at $4,107. This is an easy target, the minimum. Once support is tested the action moves toward resistance and this is where we are headed.
Some people will wonder if resistance will break or hold. Some unsuspecting bears, again, will even short at resistance thinking this is the logical move, they will lose all.
The truth is that this resistance and major high will break easily, we know this based on marketwide action and Bitcoin, Bitcoin is hitting new all-time highs every other day. In this way, we know that Ethereum will soon catch up and do the same.
Many altcoins are moving forward and growing, and some already conquered their December 2024 high price. This is another indication that shows Ether will not stay behind.
Whatever you do when Ethereum goes up, do not short. You can short if you are going to close the short after just a few hours or a few days, but instead of shorting a bullish trend, go LONG and enjoy maximum profits on the way up.
» Ethereum will break $6,000 and move toward $8,500 and beyond in the long-run.
You read it here first.
Thanks a lot for your continued support.
Resistance will break and the altcoins market will continue to grow. Not only for a few months but for a very long time.
When correction time comes, it will last a few months, we will get higher lows and then additional growth. Think of the pattern that came up on Bitcoin but with the altcoins; long-term growth.
Namaste.
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